How often can you buy I bonds? (2024)

Key points

• Series I savings bonds are often considered a hedge against inflation.
• The current composite rate for I bonds is 5.27%.
• You can buy up to $10,000 in electronic I bonds and $5,000 in paper I bonds annually.

Series I savings bonds are an attractive investment option for those seeking protection against inflation.

With a yield of 5.27%, they offer a stable return adjusted to reflect changes in inflation, meaning that if prices rise, so will the yield. This feature has made Series I bonds a popular choice among investors.

Generally speaking, there are no limits on how often you can purchase I bonds. But there are limits on the dollar amount you can invest each year. We’ll investigate those limits and answer common questions to help you see if I bonds are right for you.

What are I bonds?

An I bond is an investment issued by the U.S. government. It pays interest that includes a fixed rate, currently 1.30%.

The current inflation-linked rate for I bonds is 1.97%. The flat and inflation-linked rates are adjusted twice per year. The current calculated composite rate is 5.27%.

If you purchase an I bond between Nov. 1, 2023, and April 30, 2024, you’ll get an annualized 5.27% return for the first six months. And your bonds will grow in value for up to 30 years.

But remember, you can’t turn around and sell your I bonds after six months. The soonest that you can redeem your I bonds is after 12 months unless you live in an area affected by a natural disaster.

If you turn around and sell them in less than five years, you’ll lose the last three months of interest. That’s to say if you cash your bond in after one year, you’ll lose the last three months of interest.

How often can you buy I bonds?

OK, now that we’ve defined I bonds — which appear to be a solid investment — how often can you buy them?

While there’s no limit on how often you can buy I bonds, there is a limit on how much a given Social Security number can purchase annually. Here are the annual limits:

• Up to $10,000 in electronic I bonds.
• Up to $5,000 in paper I bonds with a tax refund.

These limits are for the recipient of the I bonds, not the giver. If you’re named the owner of the bonds, then the amount goes toward your limit. However, if you are the “second named owner” on the bond, the limit goes to the person named first on the bond.

Even though there is a limit on how much you can receive (or buy) in I bonds per year, there is no limit on the total amount that you can own in savings bonds.

How much can I buy?

Individual purchase limits for I bonds are $15,000 per calendar year — $10,000 worth of electronic I bonds and $5,000 worth of paper I bonds. Paper I bonds can only be purchased using your federal tax refund and are not bought electronically.

So if you elect to buy $5,000 worth of paper I bonds with your tax refund in April 2024, you can still buy up to $10,000 worth of electronic I bonds throughout the calendar year.

While I bonds can be purchased digitally and in the old-fashioned paper format, the amounts you buy will vary, said Michael Schulman, chief investment officer at Running Point Capital Advisors.

“The electronic form of I bonds can be purchased at any amount from $25 to $10,000,” he said. “However, their paper counterpart is a little different. Paper I bonds are only available in multiples of $50.”

That means your total purchase must be a multiple of $50, such as $100 or $250, and that range goes from $50 to $5,000 for the maximum allowable per year.

You can both give and receive I bonds as a gift.

If someone gifts you $10,000 worth of electronic bonds in the calendar year, and you want to buy more for yourself, your only option would be to buy $5,000 of paper bonds with your federal income tax refund. You would need to wait until the following calendar year to buy more electronic bonds.

How and where to buy I bonds

Those interested in buying I bonds have two options:

1. You can purchase I bonds electronically for up to $10,000 through the TreasuryDirect website. Your electronic bonds will be accessible online through your TreasuryDirect account.

2. You can purchase paper I bonds in $50 increments for up to $5,000 with your federal tax return. To do so, you’ll need to file IRS Form 8888 with your taxes, and the IRS will send your paper bonds in the mail a few weeks later. According to the IRS, “The issuance of the savings bonds could take up to three weeks; taxpayers will generally receive their savings bonds after they have received the remainder of their tax refund.”

When you should consider buying I bonds

You can buy I bonds at any time. From Nov. 1, 2023, to April 30, 2024, I bonds pay 5.27%. Remember, that rate will change semiannually based on inflation.

“I bonds offer an opportunity to lock down a certain attractive yield in an uncertain market,” said Riley Adams, a certified public accountant and founder of Young and the Invested, which provides financial literacy targeted at younger generations. “In the market tumult we’re seeing, anything with a guaranteed positive return can be a valuable asset to hold.”

An I bond rate remains in effect for six months for bonds issued from Nov. 1 to April 30, and the next fixed period is from May 1 to Oct. 31. So if you buy I bonds on Nov 1, 2023, for example, the 5.27% rate applies until April 30, 2024.